Taking ecommerce offline: Shein opens in Paris

Shein, the global fast fashion retailer that made its name by releasing thousands of products a day and using import duty loopholes to ship them around the world at ultra-low prices, opens its first brick-and-mortar store today in Paris, France. 

First announced in early October, the concession outlet is located in department store BHV. At the time, Shein said Paris would be a “test bed” for its physical store concept, but despite the uncertainty surrounding its long-term presence, the company says the Paris store will be followed by others in the cities of Dijon, Reims, Grenoble, Angers and Limoges.

Whether the approach succeeds or not, Shein doesn’t appear to be short of the cash required for its experiment. Despite questions around the true value of the company, it is still estimated to be worth between US$30 billion and US$50 billion. 

Don't miss any news, updates or insider tips from CX Network by getting them delivered to your inbox. Sign up to our newsletter and join our community of experts. 

Learn More

Taking ecommerce offline

Taking a global online fashion brand offline may seem like a move in the wrong direction, but it is far from new. Such decisions can be viewed through the lens of an omnichannel expansion, meeting customers where they want to be met whether that is online or off. 

And although there are brands that have made a permanent move from offline to online – such as British department store Debenhams, Cath Kidston and Karen Millen – a growing number of digital native retailers and brands have been embracing physical stores to varying extents since the end of the Covid-19 pandemic. This list includes Allbirds, The Revolve Group, Skims, Bonobos, Wayfair and Dolce Vita, among others.

Kerry Norlin, president of Dolce Vita footwear, is quoted by Forbes as saying: “Having our product available both through wholesale and website allowed customers to shop conveniently from home, but we also saw a growing desire for personal, in-store experiences.”

The reasons for opening physical stores vary from one business to another, but analysts agree that many of these brands are motivated by the prestige of operating a physical store, particularly in a tier one location, such as Paris, New York or London; the opportunity to build deeper relationships with new and existing customers; and, of course, the chance to boost sales. 

Rather than offering a rinse and repeat on established retail concepts, Norlin’s comments demonstrate that brands making this move have an opportunity to reimagine the retail experience with their physical stores. 

Why did Shein open in Paris? 

Present in more than 150 markets around the world, France is Shein’s largest European market with an estimated 23 million customers. However, while millions of French consumers are willing to buy from Shein, many more are staunchly against the retailer’s business model and conduct. 

French politicians, retailers and regulators are among those who oppose Shein's physical presence in France, citing concerns about sustainability, workers’ rights, product lines and competition. France's commerce and small business minister, Véronique Louwagie, says the store opened today violates licensing agreements. 

There are also concerns that Shein will negatively impact the performance of its competitors on the high street, as it has done to its online rivals.  

Shein’s controversy and IPO 

Despite its popularity, Shein is no stranger to controversy.

The success of its business model is built on loopholes in the duty-free import thresholds that exist in most of its major markets. The same loopholes allowed Temu to also build a large international customer base by offering thousands of products for an ultra-low price and shipping them direct to consumers (DTC), rather than in bulk to a central hub. The US closed its ‘de minimis’ loophole in May of this year, impacting both Temu and Shein and other countries are drawing up plans to follow suit. 

Shein’s long-awaited IPO still hangs in the balance after regulatory scrutiny prevented it listing on the New York Stock Exchange (NYSE). In mid-December 2024, Reuters reported that Shein was considering offering less than 10 percent of the company on the London Stock Exchange (LSE), but after a series of hearings and investigations, the listing is yet to go live.

Year to date, Shein has gone before the UK's cross-party Business and Trade Committee to defend its record on workers’ rights as part of its IPO bid and made headlines for using a likeness of Luigi Mangione to sell a men's shirt.

Quick links:

• John Lewis trials service-led experiences for loyalty members
• How to use AI to build trust and make service more human
• Tricks and treats: The sweet and scary in the customer experience landscape